Rush Street Interactive (NYSE:RSI) reported what executives repeatedly described as a record year in 2025, citing new highs in revenue, profitability, cash flow and user metrics despite launching in no new markets.
2025 results: record revenue and profitability
Chief Executive Officer Richard Schwartz said 2025 revenue reached $1.13 billion, up 23% year over year and above the high end of the company’s raised guidance. Adjusted EBITDA rose 66% to a record $153.7 million, also above the high end of raised guidance, while net income increased to $74 million from $7.2 million in 2024.
Gross margin was 34.4% in the fourth quarter, which Sauers attributed to a continued shift toward higher-margin markets. For the full year, gross margin was 34.6%, in line with the prior year.
User growth and engagement highlighted across regions
Management emphasized growth in monthly active users (MAUs) and continued strength in acquisition and retention.
- North America MAUs grew 37% year over year in Q4 to more than 278,000.
- Latin America MAUs grew 47% year over year in Q4 to more than 493,000.
In North American online casino markets specifically, management said MAUs grew 51% year over year in the fourth quarter, which Sauers called the company’s second-highest quarterly growth rate over the past four and a half years, achieved on a larger player base and without new market launches. Schwartz added that growth in North American iCasino MAUs accelerated in each successive quarter of 2025.
Schwartz attributed performance to broad-based execution across marketing, product, loyalty, analytics, customer service and a reduced-friction user experience. He reiterated that RSI’s “casino-first” strategy remains a key differentiator, arguing that online casino players typically have higher lifetime values and better retention than sports-only customers.
ARPU trends and Colombia tax impacts
Sauers said North American ARPDAU declined 5% year over year, which he characterized as expected dilution from rapid user growth. In Latin America, ARPDAU was down 21% year over year in Q4, largely due to additional bonusing in Colombia tied to a temporary VAT tax environment.
On the call, management provided additional quantification of the 2025 impact in Colombia. Sauers said the company recorded about $75 million of “incremental bonusing” in 2025 related to the VAT tax on deposits, which reduced revenue and likely cost $25 million to $30 million in EBITDA for the year. Despite what Schwartz called a temporary drop in net revenue, he said the company achieved 66% annual GGR growth and grew MAUs 34% in Colombia, while gaining market share.
Schwartz and Sauers noted that the temporary 19% VAT tax on deposits expired at the end of 2025. They said a new emergency decree implemented a 19% VAT on revenue for 2026, but that the Constitutional Court of Colombia suspended that decree in late January 2026 and it will be reviewed in the coming months. For guidance purposes, the company is assuming the 19% tax on revenue is in place for all of 2026, though it expects to pay the additional tax at least for January before the suspension.
Segment performance and expense discipline
By product in the fourth quarter, online casino revenue grew 30% and online sports betting revenue grew 20%. For the full year, online casino revenue increased 28% and online sports betting revenue rose 7%. Regionally, North America revenue increased 29% in Q4 and 25% for the full year, while Latin America revenue increased 17% in Q4 and 12% for the full year. Management noted these growth rates included the impact of the extra Colombia bonusing that ended in 2025.
Marketing expense in Q4 was $45.4 million (14% of revenue), while full-year marketing expense was $158.4 million, up 2% year over year and also 14% of revenue. Sauers highlighted that marketing as a percentage of revenue declined by 290 basis points versus 2024, which he tied to improved acquisition efficiency. He also said RSI posted record first-time depositors in each of the last three quarters of 2025.
G&A was $22.3 million in Q4 (6.9% of revenue) and $81 million for the full year (7.1% of revenue), down from 8.1% in 2024 as a percentage of revenue.
On capital and liquidity, Sauers said RSI ended 2025 with $336 million in cash and generated $142 million of cash during the year net of stock repurchases. The company did not repurchase shares in Q4 under its $50 million authorization, which had about $42 million remaining.
2026 outlook: higher revenue and EBITDA, Alberta timing discussed
For 2026, RSI guided to revenue of $1.375 billion to $1.425 billion (up 21% to 26%) and adjusted EBITDA of $210 million to $230 million (up 37% to 50%). Sauers said the company typically expects revenue and EBITDA to improve as the year progresses. He also said gross margin should improve modestly in 2026, though RSI expects to absorb the impact of higher gaming taxes, including the assumed Colombia revenue tax.
Management said it expects meaningful increases in marketing spend in 2026, but growing slower than revenue, while G&A is expected to grow more closely in line with revenue due to investments in differentiated casino content, lobbying efforts for iCasino legalization, and ongoing product and personnel investments.
On market expansion, Schwartz said RSI is particularly excited about a potential launch in Alberta, with timing “looking like” end of Q2 or early Q3, and that regulators appear to be moving faster than expected. Management emphasized that Alberta was not included in 2026 guidance for either revenue or incremental costs, but said it expects marketing costs associated with launch when timing becomes clearer. Sauers also said RSI’s casino share in Ontario is “kind of mid to low single digits,” with sports share “a little bit lower,” and noted that in prior North American online casino launches, RSI has been profitable by the fourth quarter of operations.
Executives also addressed several industry topics, including Illinois minimum bet changes (described as not necessarily a response to the Chicago tax and framed as an alternative to transaction fees), continued sports betting hold improvements over multiple years, and ongoing monitoring of prediction markets, which Schwartz said are not currently a high priority given RSI’s strategic focus. The company said it plans to report first-quarter results in late April.
About Rush Street Interactive (NYSE:RSI)
Rush Street Interactive (NYSE: RSI) is a digital gaming and sports betting company that develops and operates online wagering platforms in regulated markets. As a subsidiary of Rush Street Gaming, the company specializes in delivering interactive casino games, live dealer experiences, and sports betting services through desktop and mobile applications. Its technology infrastructure is designed to support real-time wagering, secure transactions, and responsible gaming tools across multiple jurisdictions.
The company’s flagship brand, BetRivers, offers a range of casino titles—including slots, table games, and virtual sports—alongside a comprehensive sportsbook featuring pre-game and in-play betting markets.
